Last Updated on August 19, 2023 by Bitfinsider

The world leader in payment processing, Mastercard, has started working with others to further innovation in the field of Central Bank Digital Currencies (CBDCs). This project comprises collaboration with seven well-known figures in the blockchain and payment technology industries.

The main objective is to get a thorough grasp of the potential benefits and restrictions provided by CBDCs. This is consistent with central banks’ rising enthusiasm for this game-changing technology.

The cooperation programme, which was unveiled on August 17, represents Mastercard’s dedication to researching the changing landscape of CBDCs. Although the specifics of the program’s goals were kept a secret, Mastercard made certain inferences about important CBDC-related topics.

These include important elements like security, privacy, and interoperability, as well as the crucial part played by the private sector in innovation.

In the evolving, digitally driven financial ecosystem, Raj Dhamodharan, Head of Digital Assets and Blockchain at Mastercard, emphasised the significance of guaranteeing CBDCs’ use.

The cooperation with numerous illustrious business leaders who have actively participated in CBDC development is the basis of this programme. One of the players is Ripple [XRP], a well-known name in the cryptocurrency world. The business recently unveiled a platform specifically for CBDCs, demonstrating its dedication to this new technology.

The programme also includes the software company ConsenSys, known for its contributions to numerous CBDC initiatives. Another member is Fluency, a company that offers tokenized assets solutions and is heavily involved in 23 different CBDC projects.

The collaboration also includes Giesecke+Devrient, a significant figure in the CBDC market. The company has cooperated with central banks in nations like Ghana and Thailand in addition to creating its own CBDC solution. A CBDC effort was actively supported by Idemia, a company that specialises in offline payments, in association with a Japanese payment provider.

The programme receives funding from Consult Hyperion, which is famous for its proficiency in offline payment solutions. The ensemble is finished by provider of institutional custody solutions Fireblocks.

The enormous interest central banks have shown in CBDCs is the background against which Mastercard’s proposal develops. 93% of these financial institutions are looking into the possibilities of CBDCs, which is impressive.

This expanding pattern represents the understanding of the disruptive potential of CBDCs in the broader sector.

Mastercard, a company renowned for its extensive payment network, has taken a proactive approach to dealing with CBDCs. Notably, Mastercard has worked on joint projects with organisations like the New York Federal Reserve Bank and the Bank for International Settlements.